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When competition might come from within, keep employees honest

by on
in Employment Law,Human Resources,Leaders & Managers,Management Training

It’s a situation that happens more often than you might think: An employer finds out that one of its employees is preparing to leave and set up her own shop.

The discovery can happen in any number of ways—an intercepted piece of mail inadvertently addressed to the new venture, perhaps. Maybe the clues are in an e-mail flagged during a routine review of computer servers. A customer might casually ask what management thinks of the employee’s upcoming departure. Quite often, office gossip is the giveaway.

But is the employer handcuffed, unable to do anything about the upstart competitor because this employee didn’t sign a noncompetition agreement?

Can’t serve two masters

There are right ways and wrong ways for an employee to leave your company. Just because an employee isn’t subject to a noncompetition agreement doesn’t mean she can’t be liable for mistakes made on the way out the door.

Even without noncompetition agreement, an...(register to read more)

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